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Credit DisabilityCredit Disability Insurance is designed to help pay the total or partial monthly payments of a loan in the event the borrowers becomes ill or falls victim to an accident or injury and is unable to work. The benefit is calculated per day of total disability. It is available with most of our loans and is a voluntary purchase. Since it is usually for a limited term-the projected length of a loan-it can be a good deal for consumers.
Eligibility
- Through age 65
- Actively employed 30 hours per week, two weeks prior to loan or effective date
Health Statements
- Required on all Home Equity Loans
Termination
- Age 66
- When debt is renewed, refinanced, or paid in full
- When requested in writing
Plan Type
- 14 day waiting period
- 14 day elimination period
Coverages
- $600 maximum monthly benefit
- $30,000 maximum benefit
- 120 months maximum term of insurance
- Pre-existing conditions covered
- 90 day normal pregnancy covered
- For Home Equity loans, $750 maximum monthly benefit and $50,000 maximum benefit
Why you need payment protection disability
- People below age 35 have a one in three chance of becoming disabled for at least six months during their working lives, and a 50 percent chance before age 65.1
- Only about 40% of Social Security Disability claims are initially approved. If you qualify for disability benefits through Social Security, there is a waiting period of usually six months before any benefit is payable.2
- Workmen's Compensation benefits pay only if disability is work related. Totally disabled individuals will receive only a percentage of an employee's average weekly wage. Benefit payments average about 66 ⅔%, subject to state maximums.3
1Consumer Credit Insurance Association news release, 12/17/2005, www.cciaonline.com/consumers.nsf/NewsLookup/20051222
2”Social Security Disability Frequently Asked Questions,” National Organization of Social Security Claimants' Representatives. www.nosscr.org/hallfaq.html
3 “State Workers’ Compensation Laws.” Office of Workers’ Compensation Programs. 01/2005: Table 6. www.dol.gov/esa/ regs/statutes/owcp/stwclaw/tables-pdf/table6.pdf.
Benefits of Payment Protection:
- Convenient - the cost of coverage is included in the monthly payment
- Pays insured monthly benefits at a time when income may be reduced and expenses higher
- Pays benefits even when other insurance is in force
- Helps reduce financial risk
- Helps provide security and peace of mind for your and your family
- Helps protect credit standing and assets
Payment Protection is credit life and disability insurance and is underwritten by Life Investors Insurance Company of America (Home Office – Cedar Rapids, IA). Exclusions, limitations and terms of availability apply to this coverage. For cost and complete details, contact your loan officer.
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